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Deal Details
Private Loan Type
Purchase
Approx. Funding Date
11/28/2022
Property Type
Property City
Madison
Property State
WI
Loan Term (months)
24
Lien Type
1st Mortgage
Payment Type
Interest Only
Purchase Price
$500,000
Loan-to-Purchase Price
75%
Borrower's Contribution to Purchase
25%
Source of Borrower's Contribution
Equity in Another Property
Location Type
Suburban
Property Condition
Good
Occupancy at Closing
Tenant-Occupied
Number of Units
2
Building Square Footage
2,468
Lot Square Footage
4,356
Borrower's Plan
Continue Rental
Exit Strategy
Refinance
Borrower Credit Rating
Good
Interest Rate
11.99%
Origination Points
3%
Deal Summary
Precision Capital, a direct private lender, provided a $375,000 bridge loan to secure the acquisition of a duplex in suburban Madison, WI. Precision Capital funded 75% of the $500,000 purchase price in 1st lien position, while the Borrower contributed 25% using equity in another property. We frequently accept cross collateral instead of cash down payments, so long as the crossed property has lots of equity. The subject property was approximately 2,468 set in a 4,356-square-foot lot. It was in good condition and tenant-occupied at closing. The Borrower had good credit. They plan to continue rental and eventually refinance as an exit strategy. The interest rate was 11.99% and the loan term was set at 24 months. We charged 3% origination points. This hard money loan was funded in November 2022.
Funded By
Precision Capital
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